NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Wednesday, September 9, 2015

Cutting Edge Capital (CEC), a leading firm helping social ventures and entrepreneurs raise capital, announced today that its client WaterFX Hydro I, Inc., dba HydroRevolution, received regulatory approval for a California limited public securities offering (DPO) to accredited and non-accredited investors in the amount of $10 million. The offering is being listed on CuttingEdgeX, a web-based platform that showcases DPOs for all types of investors. CuttingEdgeX’s Online Investment Tool (OIT) streamlines the investing process by allowing issuers like HydroRevolution to post the offering documents, explain the investment, stay in compliance with the securities laws, and receive commitments from investors, all electronically.

Using solar energy to reclaim compromised groundwater, HydroRevolution is the first desalination plant in the U.S. that does not use fossil-fueled electricity to desalinate water, which leads to higher levels of atmospheric carbon and is thought to lead to global climate change, a problem it is trying to remedy. True to its pioneering ways, it is employing the “Direct Public Offering” approach to raising capital, as opposed to the traditional route many start-up ventures take by seeking funding from accredited investors only. The $10 million that HydroRevolution raises will be leveraged with an additional $20 million in debt financing for the construction of the $30 million project. The HydroRevolution DPO represents the largest offering of this type filed by Cutting Edge Capital and its sister law firm, Cutting Edge Counsel.

“The tools we have developed are designed to allow everyone to make a big impact with a small investment, all within the boundaries of securities laws,” said John Katovich, Cutting Edge Capital’s President. “For the New Economy to grow, we must offer equitable opportunities for everyone to invest, allow meaningful interpersonal connections between investors and companies, and provide benefits to the entire ecosystem,” he added.

“We’re moving ahead with construction of HydroRevolution, and Cutting Edge has enabled us to create an offering and marketing strategy that will allow any California resident to become a part of this water revolution,” said Aaron Mandell, Chairman of WaterFX and Member of the Board of HydroRevolution. “More than just a financial return, HydroRevolution is a new, reliable source of sustainable water for the long term,” continued Mandell.